- We look into the operational performance of the S-REITs sector, and provide commentary on the various sub-sectors below, based on observations from the S-REITs we cover.
Retail S-REITs:
- Retail performance has been a mixed bag this reporting season. Assets in Singapore generally remained resilient, clocking positive rental reversions ranging between 6.9% for CapitaLand Integrated Commercial Trust downtown malls to 34.3% for OUE REIT's Mandarin Gallery. Most S-REITs also remained close to full occupancy for their Singapore retail operations, with Suntec REIT's Marina Bay Link Mall and CapitaLand Integrated Commercial Trust’s downtown malls rounding out the pack at 97.8% and 97.9%, respectively.
- - Read this at SGinvestors.io -
- We observe some evidence of trading down behaviour amongst shoppers, as higher shopper traffic has failed to translate into an increase in tenant sales for most S-REITs with retail operations. Frasers Centrepoint Trust has bucked this trend likely due to its focus on more resilient suburban malls, as did MPACT’s VivoCity property.
- According to the Urban Redevelopment Authority (URA), island-wide retail vacancy crept up 0.3 ppt q-o-q to 7.1% (as at 30 Jun 2025), largely driven by weakening demand for retail space in the Central Region. Nonetheless, URA’s rental index in both the Central Region and Fringe Area rebounded 0.9% q-o-q in 2Q25.
- Similarly, CBRE Research reported a 0.7% q-o-q rise in island-wide prime retail rents (1H25: +1.3%), while Savills noted that average monthly rents in the Orchard and Suburban areas inched up 0.5% and 0.4% q-o-q to S$23.30 and S$14.80 per square foot (psf) respectively in 2Q25. Both CBRE Research and Savills expect retail rents to register positive growth this year, supported by limited upcoming supply.
Industrial S-REITs:
- Read more at SGinvestors.io.
